Decreases in demand for construction and mining equipment in Indonesia and mining equipment in Latin America led to year-over-year declines in both net sales and operating income for Komatsu in the company’s first quarter, which ends March 31, 2014.

However, expanded sales of construction equipment and parts in Japan and the Middle East largely compensated for those demand declines, keeping the Japanese equipment maker confident that it will still achieve the large gains in both sales and operating incomes that it predicted back in April.

Komatsu saw its net sales dwindle 3 percent to $4.6 billion (455.1 billion yen) from the same period a year ago. Operating income fell 6 percent to $534 million.